The insurance sector has reported a 12.65% growth rate in the first half of 2024, indicating a robust upward trend in market performance.
The sector generated total gross written premiums of Shs933.8b, a 12.65% increase from Shs828.9 billion registered during the same period in 2023.
According to Al Hajji Ibrahim Kaddunabbi Lubega, the IRA CEO, the insurance industry saw robust growth overall, for the period under evaluation.
He said the performance across various segments of the insurance market has been encouraging, with the non-life insurance sector generating Sh142.3b in gross premiums, reflecting a 6.3% growth.
CEO-Insurance Regulatory Authority
“The life insurance sector performed exceptionally well, with premiums reaching Shs357.8b—a remarkable 22.97% increase. Health Membership Organizations (HMOs) also reported notable progress, generating Shs33.1b, a 21.24% growth,” Kaddunabbi said.
He said combined, these segments contributed to total gross premiums of Shs933.8b, marking a 4.65% increase from Shs828.9b in the same period last year. Market share for non-life insurance accounted for 58.07%, while life insurance increased to 38.32%, showcasing a positive shift towards long-term financial security.
Claims paid across all sectors amounted to Shs43.8b, representing 45.39% of total gross premiums, with the authority maintaining a zero-tolerance approach to fraud. The role of insurance brokers has also grown, with premiums handled increasing by 15.63%, highlighting their importance in driving business and enhancing consumer trust.
Looking ahead, Lubega said the outlook for the insurance sector remains positive, supported by a stable macroeconomic environment and anticipated public sector investments. Innovations, including Marine Insurance compliance and continued digital transformation, are expected to contribute further to the industry’s growth.
“With these developments, the insurance sector is on a growth trajectory, with projections of at least a 10% increase in gross premiums by the end of the year. The authority is committed to ensuring that the industry continues to play a vital role in Uganda’s economic landscape while striving for enhanced consumer protection and service delivery,” he said.
Kaddunabbi said the staller growth comes at a time when the industry is navigating challenges while implementing strategies to enhance consumer trust and service delivery.
“We are committed to addressing several challenges within the insurance sector, and I want to highlight a few key areas where we are making progress. Key among these challenges has been the issue of incorrect billing, which has led to instances of overcharging. The authority is working closely with stakeholders to ensure that billing procedures are strictly adhered to, aiming to protect both consumers and insurers,” he said.
He noted that fraud has emerged as a concerning issue, particularly in the motor insurance sector, and to combat this, the authority has established a dedicated team focused on enhancing transparency and
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